ACA Public Issue – May 2, 2012

Key Developments
ACA: Broadcasters' Anticompetitive Practices Should Be Attributable By FCC The American Cable Association is urging the Federal Communications Commission to consider two separately owned TV stations from the same market as a single, commonly owned entity under the agency's ownership attribution rules if the two stations opt to coordinate their retransmission consent negotiations with multichannel video programming providers (MVPDs). "ACA has put evidence in the record showing that scores of local TV stations are coordinating retransmission consent negotiations and the effect is to lessen competition in local broadcasting markets," ACA President and CEO Matthew M. Polka said. "To shield the public from harm arising from reductions in broadcast competition, the FCC should rule that separately owned TV stations in the same market will be considered a single entity if the stations coordinate their retransmission consent negotiations, effectively prohibiting combinations of top four rated stations that are directly forbidden under the existing local television duopoly rule." Read More / Comment on Story
ACA Seeks EAS Waiver For Small Systems Lacking Broadband At Headend The American Cable Association is asking the Federal Communications Commission to reconsider its Emergency Alert System (EAS) rules in a manner that would reduce administrative cost burdens of filing for waivers under the FCC's standard waiver process for cable systems that provide service to fewer than 501 subscribers and lack physical access to a wireline broadband connection at the headline to receive alert messages formatted in the Common Alert Protocol (CAP). "ACA is concerned that the EAS Order failed to address effectively the unique burdens that the FCC's standard waiver process places on cable systems that serve fewer than 501subscribers. To rectify this problem, ACA is urging the FCC to establish a streamlined waiver process, which would greatly reduce the regulatory burdens for very small systems that the FCC already presumes granting waivers for, without compromising the FCC's goals in establishing the CAP-compliance program," ACA President and CEO Matthew M. Polka said. Read More / Comment on Story
ACA Commends Sen. Rockefeller On Future Of Video Hearing American Cable Association President and CEO Matthew M. Polka in a statement commended Sen. John D. (Jay) Rockefeller (D-W.Va.), Chairman of the Senate Commerce Committee, for his April 24 hearing that explored the future of online video programming within the current legal and regulatory structure. "ACA commends Sen. Rockefeller for convening this hearing to continue the Committee's critical discussion on the distribution of video programming. ACA believes our existing laws governing this space are badly outdated and do not serve consumers in the manner they should expect in the 21st Century. Based upon the comments and questions we heard today, we believe many Senators feel the same way,” Polka said. Read More / Comment on Story

Radio Interview With Matt Polka
ACA President and CEO Matthew M. Polka appeared on The PM Show with Mike Horn for an interview recorded March 26, 2012. The PM Show on CRN Digital Talk Radio reaches radio stations and 11 million cable households throughout the country. Listen to the interview as Matt explains the issues facing today's independent operators. Click Here to listen to the interview which starts at 5:38.
News Headlines
Hulu, Networks To Change Model Of Free Streaming (New York Post, 4/30) Viewers who stream network TV shows may soon discover the free ride is not so free. Frankfort Plant Board Initiates Retrans Surcharge Of $3.26 (The State Journal, 4/30) Frankfort Plant Board cable customers will see a new $3.26 surcharge on their monthly bills after the Board of Directors approved a revised rate schedule for cable and broadband services. Sen. Grassley Lifts Hold On The FCC Nominees (Politico, 4/27) Sen. Chuck Grassley, the one man standing in the way of the FCC getting back to full force, is finally stepping aside. Lake: FCC Still Has Eye On Retrans (Broadcasting & Cable, 4/25) The FCC has not given up on its retransmission consent proposals, although it has been more than a year since it first proposed them. Netflix Streaming Traffic Grew 30% In Last Six Months: Study (Multichannel News, 4/25) The volume of Netflix's streaming-video traffic over wireline broadband networks in North America climbed 30% over the past six months, although the company's share of overall usage has leveled off at approximately 33% of all peak-hour downstream bandwidth, according to a new study. Time Warner Cable CEO Rips Broadcasters In Joint Op/Ed With DirecTV Chief (FierceCable, 4/24) Complaining that broadcast TV blackouts sparked by retransmission-consent disputes hurt viewers in 40 cities last year, Time Warner Cable CEO Glenn Britt teamed up with DirecTV CEO Mike White to write an op/ed that criticizes broadcasters. Diller: Would Be 'Insane' For ESPN To Sell Directly To Consumers (FierceCable, 4/24) While Internet video will offer consumers more a la carte programming choices, Congress shouldn't expect cable networks such as HBO or ESPN to bypass cable operators and satellite TV providers and sell video directly to consumers, IAC chairman Barry Diller said Tuesday. Comcast In Latest Complaint Says Bloomberg Lied To FCC (Los Angeles Times, 4/24) Comcast Corp. has accused Bloomberg LP of lying to the government in the latest twist in the battle between the two media behemoths. Start-Up Aims To Stream Pay TV Onto Web Devices (The New York Times, 4/22) In a move that could hasten the slow pace of so-called TV Everywhere, a technology start-up is introducing a way to move a whole subscription’s worth of TV onto the Web, with or without the subscription company’s permission. As Users Flock To iTunes, Hulu and Netflix, TV Stations Struggle To Survive (The Washington Post, 4/23) As the audience for free television fades, federal regulators are wrestling over the future of the government-mandated broadcasts, which were originally intended to knit the nation’s disparate communities together. For more ACA News visit the Newsroom on the ACA Website.

About ACA
Across this vast country, small and rural markets participate in the digital revolution by receiving video, broadband, and phone services from nearly 850 small and medium-sized independent operators represented by the American Cable Association (ACA). ACA’s members -- cable, phone, and fiber-to-the-home operators and municipalities -- deliver affordable basic and advanced services to about 7.4 million households and businesses. ACA members operate in every state, offering high-definition television, next generation Internet access, and digital phone service. Access to advanced communications is not a luxury but a critical necessity for consumers and companies, schools and hospitals. America’s economic prosperity in smaller markets and rural areas depends on the growth and success of ACA members, who believe a connected nation, is a united nation. The ACA asks lawmakers and regulators to ensure fair treatment so that small and medium-sized independent operators may continue to supply affordable video, broadband, and phone services to Main Street America. Through active participation in the policymaking process, ACA members and leaders advocate for the interests of their customers, their companies, and their communities to help ensure the continued viability of their way of life in hometown America. For more information, visit www.americancable.org, or contact: Ted Hearn, VP Communications (202) 713-0826 | thearn@americancable.org Ross Lieberman, VP Government Affairs (202) 494-5661 | rlieberman@americancable.org
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